I have been putting into my TSP since 2002. I started putting in 10%, then in 2006 I upped it to 15%. I have had most of my stuff in the S and I fund for a possibility of a higher risk/reward. Well in September I did an IFT to the G fund so all my money would be in there and not get hit as hard. I just did an IFT to the C fund this morning, while still having my allocated new funds going 100% to the I fund. I have about $115k in my TSP right now and I am 32 years old.Is this the right way to go or should I be more diversified in my allocations or should I have my money in the G fund to be safe right now?I am new and looking for some insight.thanksshane
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- Thread starter shaneo11
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Welcome shane! The more you get involved here, the more likely you will abandon a buy and hold strategy, whether it's all in one fund, or diversified. Most people here do a little market timing and change their allocation based on something - charts, indicators, news, economic data, gut feeling, etc.
If you decide to go the buy and hold way I would stay aggressive at your age, and when you turn 40-45, start considering getting more diversified.
Your dollar cost averaging (buying in every payday) will be important in a buy and hold strategy because I suspect with the problems in Europe and the U.S., the next few years may be very volatile. That will allow you to buy more shares during bear markets and and fewer during higher priced periods.
I still say there is more risk in buy and hold because you will be at the mercy of the market.
Good luck!
jkenjohnson
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Welcome.
Boghie
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Shane,
I think it is important to get an understanding of personal finance and retirement planning. I always recommend Ric Edelman's 'The Truth About Money' and 'The Lies About Money'. Likewise, I recommend Ray Lucia's 'Buckets of Money'. Both of these advisors have very good radio shows that I listen to regularly as well. Also, they have more current book offerings - which I may read at a later date.
'The Lies About Money' - as well as Ric Edelman's website - have a very good retirement allocation tool. Highly recommended - even though it takes some work to pigeon hole quite a few asset types into our five choices.
Why recommend personal finance rather than great investing books like Bogles' and Lynch's offerings? Easy. You have to have your personal finances in gear (including your retirement plan) before you invest at risk. All investing is risky, but individual stock, bond, and such is much more so. And market timing is difficult for everyone - some say impossible, but... Don't jump into the deep end of the pool before you have the basics and before you know there is water in it. Read the books (fast reads they are Yoda Says) or whatever else floats your boat on the topic, then try a bit of technical or fundamental analysis to gain a point to two on the herd.
But, the herd can catch you when you drop a turd. See my performance this year
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